Jane Bahr, a controller of Endicott & Thurston, prepared the following balance sheets at the end of 2009 and 2008:

Additional information:
a. Computing equipment with a cost of $250,000 and accumulated depreciation of $230,000 was sold for $5,000. New computing equipment was purchased for $376,000.
b. New office furniture was purchased at a cost of $35,000.
c. Depreciation expense for 2009 was $42,000.
d. Investments costing $20,000 were sold for cash at a loss of $2,000. Additional investments were purchased for $31,000 cash.
e. A $25,000 principal payment on the long-term note was made during 2009.
f. A portion of the cash needed to purchase computing equipment was secured by issuing bonds payable for $140,000 cash.
g. Net income was $70,000 and dividends were $38,000.

Required:
1. Using a spreadsheet, prepare a statement of cash flows for 2009. Assume Endicott & Thurston use the indirect method.
2. Discuss whether Endicott & Thurston appear to have matched the timing of inflows and outflows ofcash.

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Endicott & Thurston Associates Balance Sheets December 31, 2009 and 2008 ASSETS 2009 Current assets: Cash Accounts receivable Prepaid rent $ 2,000 78,000 29,000 17,000 219,000 104,000 $340,000 40,000 Total current assets Property, plant, and equipment: Equipment, office furniture Accumulated depreciation Long-term investments $488,000 400,000 $ 888,000 $362,000 365,000 $727,000 Equipment, computing 6 Net property, plant, and equipment 173,000 Total assets LIABILITIES AND EQUITY Current liabilities: Accounts payable Salaries payable $56,000 89,000 $58,000 105,000 $145,000 $163,000 105,000 $268,000 Total current liabilities Long-term liabilities Long-term notes payable Bonds payable 80,000 140,000 365,000 Total liabilities Equity Common stock Retained eanings $225,000 92,000 $225,000 60,000 Total equity Total liabilities and equity 317,000 $682,000 285,000 $553,000